A study on the factors affecting original equipment manufacturers in the semiconductor industry following mergers and acquisitions

Abstract

Semiconductor merger and acquisition activity increased in 2019, following two years of declines from record-breaking highs in 2015 and 2016. The cost of manufacturing and expanding production capabilities has increased dramatically as the chip manufacturing process and technology has progressed. Companies are zealous to look for targets who have the technical capabilities to quickly develop new products and applications, thereby reducing the time to market innovative products and meet customer expectations. The purpose of this research is to identify and assess the most important factors and sub-factors that explain how semiconductor mergers and acquisitions impact original equipment manufacturers (OEMs). This qualitative study explains how innovations, company performance, and industry attractiveness are important elements that affect original equipment manufacturers, as evaluated by research outcomes such as sustainable value, profitability, and buyer bargaining power. The findings of this study provide a solid foundation for further research into the influence of mergers and acquisitions on semiconductor chip buyers and offer significant contribution to the current literature.